If you have $500 and plan to invest in top Canadian stocks, consider investing in the shares of WELL Health (TSX: WELL), Docebo (TSX: DCBO), Celestica (TSX: CLS), and TerraVest Industries (TSX: TVK). These companies have solid fundamentals and are most likely to outperform the benchmark index by a wide margin. With this backdrop, let’s delve deeper to understand why these stocks are worth buying and holding for the long term.
Source: Getty Images
WELL Health stock
WELL Health is a top TSX stock to buy and hold. The omnichannel healthcare company is growing rapidly, led by the ongoing strength in its Canadian Patient Services segment. Moreover, its U.S.-based virtual care platforms are also witnessing stellar growth.
WELL Health has consistently delivered solid revenue growth and free cash flow. Further, higher patient visits, solid organic sales, and a robust acquisition pipeline suggest that WELL Health is poised to sustain this momentum in the coming years.
The omnichannel healthcare company is leveraging artificial intelligence (AI) to accelerate product development. Meanwhile, it focuses on reducing costs, lowering debt, enhancing cash flow, and targeting profitable growth, which will support the uptrend in its share price.
Docebo stock
Shares of leading AI-based learning platform provider Docebo could be a solid addition near the current price levels. The company has been consistently delivering solid recurring revenues led by solid growth in its customer count and expansion of average contract value. Further, the majority of the company’s annual recurring revenue is from customers with multi-year contracts. This adds stability and enables the company to generate predictable cash flows.
Looking ahead, its growing customer base, higher average contract value, and solid retention rate will support its financials. Moreover, expanding into new industries and government verticals will likely accelerate its growth rate. Innovation and new product launches are expected to drive its addressable market and increase its market share. Overall, the tech-based learning platform provider is poised to deliver solid financials, which will push its share price higher.
Celestica stock
Celestica is an attractive stock to capitalize on the thriving AI sector. It provides supply chain solutions and electronic manufacturing services and has benefited from higher spending on AI infrastructure, such as data centre hardware.
Celestica’s Connectivity & Cloud Solutions (CCS) segment is at the forefront of its growth. This division focuses on next-generation storage, server, and communications products—areas experiencing explosive demand. A key driver within this segment is its hardware platform solutions, especially the Ethernet switch business, which is seeing rapid growth due to surging interest in high-speed networking technology.
In particular, Celestica is poised to benefit from booming demand for networking switches, including cutting-edge 400G and 800G switches. Further, its diversified portfolio provides a cushion against the cyclical nature of the tech market. This balance helps the company weather fluctuations in demand while positioning it to capture opportunities across multiple industries.
TerraVest Industries
Shares of the TerraVest Industries have gained significantly year to date. The company has been benefiting from strong demand, particularly in its Service segment, along with robust momentum in key product areas like compressed gas distribution equipment and petroleum tanks for residential and commercial use. These factors and recent acquisitions have significantly boosted TerraVest’s revenue and share price.
TerraVest is making investments to improve its operations. The company is focused on enhancing manufacturing efficiency and expanding its product lines in markets where it already has a strong foothold. These initiatives are expected to provide long-term support for its financial performance, making it well-positioned to capitalize on future growth opportunities.
Moreover, its recent acquisitions will likely bolster its growth rate. These acquisitions are helping TerraVest tap into new opportunities and consolidate its leadership in its core markets. Overall, strong operational performance, strategic acquisitions, and ongoing investments in efficiency will likely drive TerraVest stock higher.
